Â黨ӰÊÓ

Please find a comment below from the Early Years Â黨ӰÊÓconfirmation of the local authority funding rates for 2025/26, which can be accessed . 

The government also announced a £75m expansion grant to support settings to deliver the final phase of the early entitlement expansion and a 45% increase to the Early Years Pupil Premium, taking it to £570 per eligible child per year.  

Commenting on confirmation of 2025/26 local authority funding rates, Â黨ӰÊÓCEO Neil Leitch, said:   

“While any increase of funding is of course welcome, the fact is that today’s funding rates will fail to even come close to covering the cost of changes to National Insurance Contributions and wage increases.   

“With our own research showing the National Insurance changes will cost settings more than £18,000 a year what providers needed was a commitment to mitigate the impact of these changes. Yet in reality, by not accounting for these changes in next year's rates countless nurseries, pre-schools and childminders will be left with no option but to raise costs, reduce places or simply close their doors completely.   

“What’s more, the Treasury may claim that the rates announced today takes into account the upcoming rises to the National and Living wages, but we know it will do little – if anything at all – to support settings to meet these increases and ensure wage differentials between junior and senior staff. As such, not only will it place even more financial pressure on settings but it is likely to make the sector’s ongoing staffing crisis even worse.    

“Today was an opportunity for the Treasury to show it recognises the catastrophic impact that the National Insurance and wage changes will have on the sector. Not only has it turned a blind eye to this, but it will have clear repercussions on families expecting to take advantage of the ongoing expansion."